Alabama Moves Up to No. 7 on Top Business States List
Alabama has once again been recognized as one of the best states for business by Area Development magazine, securing a spot in the top 10 for the third consecutive year. In their 2026 report, Alabama ranked No. 7 overall, an improvement from its previous rankings of No. 8 in 2024 and 2025.
The state's success is highlighted by three first-place finishes in critical categories and a top-10 finish in over a dozen other areas. Governor Kay Ivey attributes this achievement to Alabama's business-friendly policies, including:
- Property Tax Environment: Ranked No. 1, offering attractive property tax incentives.
- Overall Cost of Doing Business: Also placed first, making it an affordable location for businesses.
- Labor Cost Competitiveness: Alabama's skilled labor force contributes to its competitiveness in this category (No. 1).
Other notable rankings include:
- Business Incentives Programs: No. 3
- Regulatory Environment: No. 4
- Permitting and Development Predictability: No. 4
- Cooperative Local and State Government: No. 5
- Workforce Training Programs: No. 5
- Energy Availability & Grid Capacity: No. 6
- Site Readiness Programs: No. 7 (tied)
- Availability of Industrial Sites and Buildings: No. 7 (tied)
- Access to Skilled Manufacturing Labor: No. 8 (tied)
- Engineering Talent and Industry Cluster Strength: No. 10
Georgia, a consistent leader, topped the list for the 13th year in a row. Area Development publisher Dennis Shea notes that top states are excelling across various factors, including workforce, infrastructure, speed to market, energy availability, and project execution capabilities.
Alabama's recent success is reflected in its record-breaking 2025, which saw $14.6 billion in new investments and the creation of over 9,000 jobs. Commerce Secretary Ellen McNair attributes this to Alabama's efforts to create a favorable environment for investment and job growth.